Collection of rates - between sanction and persuasion
This paper is based on a study conducted by the author to explain reasons for the accumulation of uncollected rates or property tax in local authorities. Approaching the study from a macro perspective and using data from 69 local authorities it was found that the inability of some local authorities...
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| Format: | Conference or Workshop Item |
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2003
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| Online Access: | http://eprints.utm.my/1541/ |
| _version_ | 1848890159691464704 |
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| author | Alias, Buang |
| author_facet | Alias, Buang |
| author_sort | Alias, Buang |
| building | UTeM Institutional Repository |
| collection | Online Access |
| description | This paper is based on a study conducted by the author to explain reasons for the accumulation of uncollected rates or property tax in local authorities. Approaching the study from a macro perspective and using data from 69 local authorities it was found that the inability of some local authorities to collect rates is due to inefficiency, third party intervention as well as attitude of ratepayers. Focusing on the ratepayers, their reasons for not paying rates include perception of inequity in the balance of trade (higher percentage of expenditure in local authorities is towards emolument payment), level of income of ratepayers, third party influence and availability of opportunities for ratepayers to delay making payments. Added to this is lack of deterrence measures undertaken by local authorities. A blanket approach, such as appointing legal firms as collector is costly but seldom successful. What should be undertaken by local authorities is to conduct their own research to understand the thinking of rate defaulters. Here, some form of investment is needed. If reasons for non-payment are due to inadequate fund then persuasion should be the approach. However, if it was found that the rate payers is actually well off, then the deterrence approach should be adopted. As a conclusion, to address the issue of uncollected rates,local authorities should not adopt a blanket approach but rather a combination of both persuasion and deterrence. The best however is to educate ratepayers of their social responsibility and for local authority's role as coordinator in the development and management of urban areas be highlighted |
| first_indexed | 2025-11-15T20:37:39Z |
| format | Conference or Workshop Item |
| id | utm-1541 |
| institution | Universiti Teknologi Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T20:37:39Z |
| publishDate | 2003 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | utm-15412017-08-29T07:54:01Z http://eprints.utm.my/1541/ Collection of rates - between sanction and persuasion Alias, Buang HJ Public Finance This paper is based on a study conducted by the author to explain reasons for the accumulation of uncollected rates or property tax in local authorities. Approaching the study from a macro perspective and using data from 69 local authorities it was found that the inability of some local authorities to collect rates is due to inefficiency, third party intervention as well as attitude of ratepayers. Focusing on the ratepayers, their reasons for not paying rates include perception of inequity in the balance of trade (higher percentage of expenditure in local authorities is towards emolument payment), level of income of ratepayers, third party influence and availability of opportunities for ratepayers to delay making payments. Added to this is lack of deterrence measures undertaken by local authorities. A blanket approach, such as appointing legal firms as collector is costly but seldom successful. What should be undertaken by local authorities is to conduct their own research to understand the thinking of rate defaulters. Here, some form of investment is needed. If reasons for non-payment are due to inadequate fund then persuasion should be the approach. However, if it was found that the rate payers is actually well off, then the deterrence approach should be adopted. As a conclusion, to address the issue of uncollected rates,local authorities should not adopt a blanket approach but rather a combination of both persuasion and deterrence. The best however is to educate ratepayers of their social responsibility and for local authority's role as coordinator in the development and management of urban areas be highlighted 2003-07-09 Conference or Workshop Item NonPeerReviewed Alias, Buang (2003) Collection of rates - between sanction and persuasion. In: International Convention on Urban development and Management, 7-9 July 2003, LADA Complex, Langkawi. (Submitted) |
| spellingShingle | HJ Public Finance Alias, Buang Collection of rates - between sanction and persuasion |
| title | Collection of rates - between sanction and persuasion |
| title_full | Collection of rates - between sanction and persuasion |
| title_fullStr | Collection of rates - between sanction and persuasion |
| title_full_unstemmed | Collection of rates - between sanction and persuasion |
| title_short | Collection of rates - between sanction and persuasion |
| title_sort | collection of rates - between sanction and persuasion |
| topic | HJ Public Finance |
| url | http://eprints.utm.my/1541/ |